Don’t leave nations stuck between debts and the people, Anwar tells summit

 The prime minister said some developing countries were spending more on interest payments than on educating their young or caring for the sick.

Prime Minister Anwar Ibrahim addressing the BRICS summit meeting in New Delhi today. (PMO pic)

NEW DELHI:

Prime Minister Anwar Ibrahim has called for a fairer global financing system, saying no country should be forced to choose between repaying its debts and meeting its obligations to its people.

“Many developing countries were facing debt distress or were at serious risk of it, with some spending more on interest payments than on educating their young or caring for the sick,” he said at the summit meeting of the BRICS economic grouping.

“No nation should be forced to choose between honouring its debts and honouring its obligations to its people,” said Anwar, who is also the finance minister. He said financing must be “fit for purpose”, and countries should not be left with unsustainable debt in carrying out its duty to meet basic needs and providing public goods.

He also highlighted the role of commercial capital when deployed on sound and sustainable terms, while calling for progress on initiatives including the New Development Bank, local currency settlement mechanisms and the potential of Islamic capital markets.

Anwar urged countries to take concrete action to dismantle unfair trading practices and share development experiences, technical cooperation and training in emerging fields such as semiconductors and artificial intelligence. - FMT